Beware! LocoInvest is an offshore broker! Your investment may be at risk.
RECOMMENDED FOREX BROKERS
Don’t put all your eggs in one basket. Open trading accounts with at least two brokers.
LocoInvest could not have chosen a more inappropriate name. Loca from Spanish means crazy, and when added as a title ta a broker, it read “CrazyInvest”, as in out you crazy to invest here. As the review will spill out, those that do either are truly crazy or are misled by a scammer broker using the same bag of tricks that have been utilized hundreds of times before. Read on to find out all about this one.
LocoInvest comes with another very suspicious registration page. When we say suspicious, we mean that it has been used before by numerous other questionable brokers. What followed a shady registration form, was an ever more suspicious looking user area that did not give us any hope. It was incredibly simple and was lacking any sort of color or feeling.
At least we were able to access a trading software, with a EUR/USD spread of 0.1 pips. Although this is by far the best cost of trade, we do not trust it. We were unable to get a leverage value though. As for the trading assets, the trading platform revealed them to be forex pairs, commodities, indices, cryptocurrencies, and stocks.
As of now, the website is available only in English.
LOCOINVEST REGULATION AND SAFETY OF FUNDS
LocoInvest prides itself on being the owner of a Certificate of Incorporation of a Private Limited Company. This is irrelevant. Any company can be incorporated, but not any company can be labeled a broker by a legit FX regulator.
The Terms and Conditions claim that the website operates under Estonian law. The company is known to harbor some scammer brokers, while the local FX regulator has no mention of the broker at hand. Meaning that it does not make a difference if the broker is located in Estonia. It certainly is not regulated there.
To conclude, it seems that LocoInvest is UNLICENSED and a risk to all investments!
There is no reason at all to invest in an unregulated broker. The best advice there is, concerning the choice of a broker, is to always check for a license. If the broker has an FCA and CySEC license you are off to possibly the best start, as these are some of the top regulators in the industry. Usually, legitimate FX overseers integrate a set of rules to each of its listed brokers. Brokers form an agreement with them to follow very strict guidelines. Furthermore, some agencies, like the FCA or CySEC, have compensation schemes that reimburse clients whose brokers have become insolvent. As you can see, a regulated broker benefits not only the brokerage itself, but the traders as well.
LOCOINVEST DEPOSIT/WITHDRAW METHODS AND FEES
The user portal reveals a very sloppy payment gateway area, where it was revealed that the minimum deposit is $250. The payment methods are OctaPay and PayCent. Both payment gateways do not seem very legitimate.
The withdrawal info was taken from the Deposit and Withdrawal Policy. The withdrawal portal was very simplified, and so we had no way to get any payment details from it.
According to the policy, withdrawals are charged a certain amount depending on the method of payment: $50 for Bank Transfers, $35 for Credit Cards, and $25 for e-payments. The minimum withdrawal amount is $100 for all methods except wire transfer, where the minimum is $250. Processing times for withdrawals can take anything between 2 and 5 days. The minimum wire withdrawal amount is $250, while the minimum for all other methods is $100.
However, none of this makes any difference. The Non-Deposited Funds clause returns, meaning that a user cannot withdraw any of the funds that he or she has gained from trading. This is by far the most notorious clause to be used by scammers.
LocoInvest has absolutely nothing to offer users. Thie broker is unregulated, a scam, and a risk to all deposited capital, as well as any personal information provided with it. Stay away!
How does the scam work?
If things feel uneasy or suspicious, then you are probably being scammed. Most fraudsters adapt the same scam structure, however, they might add their own little nuances. The point is, that if you think you are in a scam, then you probably are!
The first step is the online ads. These annoying pop-ups or side distractors are the essence of scammer brokers. It’s through them that the user is lured into the fake broker website. The link of the ad leads to a website or a registration form. Both require the user to write down his or her personal details, like email and telephone number. Do not give these away. The scammers will contact you if you give these details away, and will sooner or later try to charm his/her way into your wallet, by asking you to deposit.
After a deposit is made, and hopefully, it isn’t, then the first step of the same is complete. The following step concerns the account manager, a.k.a the advanced scammers. These individuals are charming convincers, and if they succeed, it means that you have deposited a second time. This can go as long as the user keeps depositing. When suspicious arises, one of these things will probably happen: the broker will delete the account of the user without a reason; the broker will not allow for withdrawals, or the broker will keep finding ways to stall withdrawals.
What to do if scammed?
Filing for a chargeback is the best advice. VISA and MasterCard have prolonged their chargeback time span to 540 days.
If the deposit is made through wire transfer, then change your user name and password as soon as possible. Another step is to contact the bak as they might have a specialized procedure for such cases.
Another crucial piece of advice: NEVER deposit in unregulated brokers through bitcoin or any other form of cryptocurrency. These payment methods are untraceable, meaning that once a deposit is made, it cannot be traced. The money is lost.
Last but not least. recovery agencies are definitely a scam. These programs, or whatever they call themselves, offer help for defrauded users…for a price. Once the fee/tax is collected, these agents disappear, leaving you at a bigger loss.